ArborGen and Vallourec Sign Eucalyptus Commercialisation Ag

ArborGen and Vallourec Sign
Eucalyptus Commercialisation Agreement
Expansion of products available to Brazilian forest owners

11 November 2020 - Today, ArborGen, a world leader in the development and commercialisation of
technologies that improve the productivity of trees, announced that it has entered into an agreement
with Vallourec S.A. that gives ArborGen exclusive rights to develop and commercialise Vallourec’s
genetically improved eucalyptus clones in Brazil. The partnership will expand the products ArborGen
can offer its customers, as well as allow it to expand into new markets in Brazil. The company will
begin offering Vallourec seedlings in November 2020.
ArborGen is one of the largest commercial suppliers of eucalyptus and pine tree seedlings in Brazil.
ArborGen already has exclusive rights to commercialise International Paper’s and other companies
eucalyptus clones in Brazil, and continues to also develop its own proprietary eucalyptus clones which
it is beginning to commercialise.
ArborGen currently operates three nurseries in Brazil, complemented by a network of contract
producers that allow it to address all of the major eucalyptus markets in Brazil. ArborGen’s eucalyptus
products are available in all of the primary eucalyptus growing regions in Brazil including the states of
Minas Gerais, Mato Grosso, Mato Grosso do Sul, São Paulo and Paraná.
Gabriela Monnerat, the General Manager of ArborGen Brazil, said “The agreement with Vallourec
allows ArborGen to provide new clones that offer growers high yields and high wood density. In
addition, the Vallourec clones demonstrate very good drought tolerance – an increasingly important
trait as eucalyptus plantings in Brazil expands into dryer regions and as rainfall patterns change as a
result of global climate change.”
The Brazilian forestry industry is one of the largest, fastest-growing in the world, and Brazil is the
world’s largest producer and exporter of hardwood pulp. The eucalyptus market utilises
approximately 700 million seedlings per year.
Commenting on the current COVID-19 situation in Brazil, ArborGen’s CEO, Andrew Baum, said,
“ArborGen’s customers planting programmes have to date been affected to varying degrees by the
impact of the global pandemic as planting crews and customers adjust to new health and safety
measures. Having said that, as pulp and paper and charcoal used in the steel industry are primary end-
markets for forestry in Brazil, we are expecting demand for our products to pick-up in the second half
of the fiscal year as some customers accelerate planting to recover from delays earlier in the year, and
as ArborGen continues to expand its customer base in new regions.”


To: NZX From: Sharon Ludher-Chandra

Further information on ArborGen Holdings Limited can be viewed at our web site http://www.arborgenholdings.com.

ArborGen
ArborGen is the largest commercial global seedling supplier and a leading provider of advanced genetics, for the
forest industry. Employing state-of-the-art technology, ArborGen is developing high-value products that
significantly improve the productivity of a given acre of land by enabling our customers to grow trees that yield
more wood per acre with greater consistency and quality in a shorter period of time. ArborGen’s products are
improving the sustainability of plantation forests while helping to meet the world’s growing need for wood, fibre
and energy. For more information, please visit ArborGen’s website at www.arborgen.com.

Vallourec
Vallourec is one of the leading suppliers of long steel in the Americas and specialty steel in the world. In Brazil, it
also produces flat steel and iron ore, activities that increase the mix of products offered to the market and the
competitiveness of its operations. Vallourec is also the largest recycler in Latin America and, globally, annually
transforming millions of tons of scrap into steel, reinforcing its commitment to the sustainable development of
the regions where it operates. Vallourec shares are listed on the stock exchanges of São Paulo, New York and
Madrid. The company uses Eucalyptus to make coal used in steel production.


Media Contact:
ArborGen Brazil
Ana Gabriela Monnerat, Diretora
+55 19 3253-3800
agbassa@arborgen.com